Stock market contributes to better allocation of capital and intensities capital formation."" Do you agree? Explain.
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In the primary market the flow of funds is from savers to investors, that directly promotes capital formation. At the same time secondary market enhances the marketability of securities and thereby provides liquidity to investments. It indirectly promotes capital formation.Read more on Sarthaks.
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Explanation:
In the primary market the flow of funds is from savers to investors, that directly promotes capital formation. At the same time secondary market enhances.
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